The New Paper article 1st February 2010
'We chose HDB over condo for a simpler life'
[Tiffany's Note: The trend now is towards larger apartments. As HDB is currently building mostly 2-4 Room flats, 5 Room, Executive Apartments & Executive Maisonettes are getting very popular. They are mostly Singaporean buyers, and indeed, some are those who used to stay in private property and find no point in paying hefty maintenance fees for facilities they rarely use. In fact most of the buyers for Executive flats are looking for a bigger property & a quiet environment to stay in. Most of them have dogs and will be on the lookout for nature parks nearby.]
Excerpt: 'But Mrs Leung Chiu Mei, 48, and her husband, 51, have made the unusual move of giving up their condominium in Clementi for an HDB flat in Bukit Batok.
She said, "I want other people to know that there are others like myself who feel like kings living in HDB flats in cheaper locations."
The couple, who have two children, claimed they could have easily bought a house on Sixth Avenue but decided to downgrade instead.
After selling their 2,000 sq ft condo unit for a profit of more than half a million dollars in 2007, the family moved to a 1,570 sq ft HDB maisonette, which they bought for $353,000. The condo unit had cost them $1.2 million when they bought it in 1995.
[Tiffany's Note: It is worthwhile to note that EMs in Bukit Batok are now fetching a price of $450K to $550K. Owners who bought in 2007 have made a healthy profit so far.]
Mrs Leung said, "There's more to life than upgrading from one home to another. People can keep chasing after material wealth and fame, but they shouldn't put down other people just because they are happy in their four-room flat."
Mrs Leung dresses simply and shops at a wet market that's a seven-minute walk away. She drives a Nissan Sunny she shares with her husband. They had paid around $50,000 for it in 2006.
The couple, who both hold executive positions in multi-national companies, have a combined income of more than $20,000 a month and have two other properties.
Mrs Leung bought a flat for her sister, who is educationally subnormal and unemployed. The couple also own a private apartment in District 9, near the Istana. They also have investments in stocks, insurance products and cash in fixed deposits.
Explaining her choice, she said: "Condo living is not that great."
Mrs Leung lived in the condominium with her family for eight years. Before that, they were living in a three-room HDB flat they bought for less than $100,000, "even though we were earning a decent salary".
They had bought the condominium in Clementi as an investment, and had rented it out for the first four years.
But after the rental market tanked, they decided to sell their flat and live in the condominium rather than leave it vacant.
Mrs Leung said, "We were not pursuing the upgrading dream when we moved to the condominium. We have always been very frugal. Our expenditure is only 10 to 15 per cent of our income."
Although they were living in a condo, they were not spared from inconsiderate behaviour from their neighbours, said Mrs Leung.
One of her neighbours used to sweep dirty water into her home almost every day after they washed their yard.
It was also inconvenient for her two sons to travel to school. Now, the boys have a direct bus to their school, which is on Bukit Timah Road, from their flat.
Her sons, aged 15 and 14, said they also prefer their current home as there is a coffee shop downstairs, making it easy for them to grab breakfast on their way to school.
And of course, the move has left her with extra money in the bank.
She said, "When we downsize our aspirations and expectations, we can live with more freedom instead of worrying about how to up our living standards or being encumbered by bills."
CEO of Re/Max Empire Property Group David Cheang said cases of people downgrading from private property to HDB flats are rare.
Most do so because of financial difficulties.
PropNex chief executive Mohamed Ismail said it would make sense for people who have lived in a private property to downgrade if their property has appreciated in value over the last two years.
Others who downgrade do so because they prefer a lifestyle change.
He said: "Some people are paying high maintenance fees for a swimming pool and clubhouse that they are not using.
"HDB flats are still value for money, as the amount people pay per sq ft is still very low compared with private property."'
.JPG)
+Logo+-+Long.jpg)
Posts
